China’s SAFE tightens rules on FX purchases

China’s State Administration of Foreign Exchange (SAFE) has announced new measures, which requires FX buyers to provide detailed information of their buying purpose and how they plan to hold it.

The new measures – supervision of FX purchases – may help curb speculative foreign exchange purchases.

SAFE also stated on Monday that it would impose heavy penalties for illegal foreign exchange transactions such as illegal transfers, false declarations and currency swindling.